The automotive world is witnessing a significant potential collaboration between Mercedes-Benz and BMW, as the two German rivals are in advanced discussions regarding an engine partnership. This potential deal could be a major turning point in the German automotive sector. Reports suggest that Mercedes plans to incorporate BMW’s B48 four-cylinder turbocharged engine into its future petrol and plug-in hybrid vehicles. This engine is a proven component in multiple BMW and Mini models. Its design allows it to be adapted to various car platforms, suiting models such as the Mercedes CLA, GLA, GLB, C-Class, E-Class, and the upcoming Little G SUV. Mercedes currently uses a 1.5-liter M252 engine, which is suitable for mild-hybrid technology but not ideal for plug-in hybrid or range-extender applications. The B48 engine addresses this issue. Production of the engine could be at BMW’s Steyr plant in Austria. The companies are also considering a joint factory in the United States to mitigate import duties. Mercedes would benefit from this deal by acquiring a certified, Euro-7 compliant engine, thereby reducing research and development costs and accelerating its plug-in hybrid range expansion. BMW would also gain from the deal by optimizing its production capacity and increasing the efficiency of its factories.
